The Securities and Exchange Commission will allow foreign entities
wishing to issue baht bonds to submit shelf filings similar to Thai
issuers. The prospectus and information disclosures must include
warnings that the baht bonds issued by foreign issuers will not have
any guarantees on price or issuer status from the Finance Ministry.
The baht-bond issuer, structured as a special purpose vehicle,
must disclose information of its ultimate issuer.
The SEC board also cancelled a rule that had allowed issuers
wishing to sell bonds overseas to place some of the issue in the Thai
market.
Local institutional investors can now invest directly
overseas, so it is not necessary to relax the rule requiring those who
want to issue bonds overseas to sell some in the local market as well.
If any issuer wants to place its bonds locally, it has to
follow the existing requirement by submitting its filing and rating the
bonds. The bond must have a rating of at least investment grade.
